It is true that a person with a high credit score is the person who is more likely to pay bills on time.
What is a High Credit Score
Based from the credit bureaus, scores over 650 is considered a “good” credit score. This scores is calculated using a scoring models provided by certain companies specializing in data analytics. Some lenders also have their own models. The range of this scoring models are from 300 to 850.
Moreover, the highest possible credit score for certain companies is 850.
On the other side, for some company, the scores below 670 are considered in the fair and poor range. While for some score below 700 are considered in the fair and poor range.
What do Credit Scores Implicate?
Credit scores are the three-digit numbers that tells how the scoring model break down a person’s credit scores. This number is calculated using the information of a person in their credit report at a credit bureau. Each bureau has its own system of filing and scoring. The file is the set of information that tells how a person used a credit or not.
This score and equivalent of this score tells the lenders and credit card issuers how good or bad a person pay off their loan or credit card. This score provides the risk data to a lender whether they will approved a loan from a certain person.
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Keywords: credit score, credit, loan
